Mutual funds are back to launching equity schemes with lock-ins after a gap of almost a year as the stock market sees sharp erosion in value.
Three fund houses — ICICI Prudential, Birla SunLife and Sundaram — have launched close-ended equity products and more are likely to follow suit soon. But, wealth managers said these products could find fewer takers this time as many investors face the prospect of losses in investments made in such schemes in 2014 or 2015.
The new fund offer of ICICI Prudential India Recovery Fund - Series 4 (36 months tenure) opens on February 8, while Birla Sunlife Emerging Leaders Fund - Series 7 (42 months tenure) opens for subscription on February 5.
Sundaram Value Fund - Series 4 has just concluded its NFO. In 2014, close-ended funds raised over Rs 10,000 crore due to higher distributor commission and a revival of sentiment after the Narendra Modi-led BJP came to power.
